Jack Henry™ (Nasdaq: JKHY), a leading provider of technology solutions and payment processing services primarily to the financial services industry, today announced a collaboration with Moov, a modern digital payments processor, to enhance digital payment services for small and medium-sized businesses (SMBs) through municipal and regional financial institutions.
This partnership will enable financial institutions to offer innovative payment services to small and medium-sized enterprises (SMEs), including the ability to accept payments with a simple tap of the phone, receive funds the same day, and automate reconciliations with accounting software. These services will be integrated into financial institutions' existing deposit and core banking services and will help streamline business operations and improve the efficiency of small and medium-sized enterprises.
Strategic innovation to support regional banks and credit unions
“This innovation is enabled by our technology modernization strategy to provide local and regional financial institutions with cloud-native, API-first services that enable them to strategically differentiate, compete successfully and meet the evolving needs of their customers,” said Greg Adelson, President and CEO of Jack Henry. “We are excited to partner with Moov on this unique solution that provides our customers with modern, innovative business payments capabilities that are seamlessly integrated with deposit and core banking services.”
Ben Metz, Chief Technology Officer at Jack Henry, highlighted the benefits of the service, stressing its potential to reduce fragmentation among small and medium-sized businesses that often juggle numerous relationships with banks and fintechs.
He says: “This service will reduce fragmentation and put regional banks and credit unions at the heart of the relationship,” says Metz. “It will also help financial institutions attract deposits from SMEs, which are typically significantly higher than retail deposits. This is particularly attractive as our customers have identified growing deposits as their top strategic priority.”
Addressing the needs of small American businesses
According to the Small Business Administration, there are about 33.3 million small businesses in the U.S., representing 99.9% of all U.S. businesses. However, a 2023 Datos Insights survey found that 56% of small businesses bank with one of the four largest banks, while only 18% bank with a small financial institution.
Recognizing the importance of this market, Jack Henry found in its 2024 Strategy Benchmark Survey that 78% of its clients plan to expand their small business capabilities over the next two years, with nearly 70% prioritizing the launch of SME payment services.
Jack Henry and Moov plan a phased rollout of this new service, with beta testing expected to begin in mid-2025.